Former Goldman Sachs COO wants to know "Who broke the law?"
Gary Cohn, former Goldman Sachs COO, is puzzled.
For some bizarre reason some people are under the impression that Wall Street banks may have broke some laws.
“Who broke the law? I just want to know who you think broke the law,” Cohn, the former Goldman Sachs GS, -0.20% president who served till March as President Donald Trump’s director of the National Economic Council, said in response to a question from Reuters reporter Gina Chon about the role of banks during the global economic crisis that began in earnest with the bankruptcy of Lehman Brothers in Sept. 15, 2008.
“I thought the U.S. criminal system worked [in such a way] that you had to break a law,” Cohn told Reuters’ Chon. “I didn’t think you could be indicted on a charge of just because someone didn’t like what you did.”
It's understandable that Cohn might have missed a minor event that happened while he was COO in 2016.
Investment banking giant Goldman Sachs has agreed to a list of “facts” in addition to paying $5.1 billion to settle a lawsuit related to its handling of mortgage-backed securities leading up to the 2007 financial crisis, the U.S. Department of Justice announced Monday.
“This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart F. Delery in a statement.
As part of the settlement, New York-based Goldman agreed to a list of facts put together by the DoJ that stated Goldman had misled investors about the mortgage-backed securities while knowing that the repackaged loans were indeed riskier than what they had told investors.
If I was fined $5 Billion and forced to admit to committing fraud I would remember it, but Cohn must have been doing something else that day.
Cohn also forgot about this.
Five of the world's largest banks have plead guilty to federal charges including manipulating the global foreign exchange market and rigging a benchmark interest rate that affects the cost of credit card, vehicle and other loans.
Citicorp (C), JPMorgan Chase (JPM), Barclays (BCS) and Royal Bank of Scotland (RBS) agreed to pay more than $5 billion for conspiring to fix the price of U.S. dollars and euros, the Justice Department said Wednesday. The main banking unit of UBS Group plead guilty to charges tied to interest-rate manipulation.
Maybe Cohn thinks "plead guilty" means something different.